Machinery imports: 'imposition of GST detrimental to expansion of industrial base'

Imposition of General Sales Tax (GST), on machinery imports is detrimental for expansion of industrial base in Pakistan, an official of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Sunday.
Slapping 17 percent GST on imports of machinery, equipment etc has put brakes on expansion and modernisation plans of many industrial concerns while scores have shelved idea to set up new factories, said Raza Khan, Chairman Co-ordination, FPCCI.
Speaking to business community at FPCCI Capital Office, he said that cost of doing business is increasing during these times of sluggish growth, which is not in the national interest. Such moves have raised new questions over the country's prospects for economic stabilisation, he said adding that it will contribute to unemployment, anxiety, lawlessness and reduced tax collection.
Raza Khan said that manufacturing and SME sector should be encouraged to play their due role in national development with peace of mind. The combination of inflation, rising debt, high interest rates, energy shortfall, law and order situation and slow economic growth are growing problems which shouldn't be ignored, the FPCCI official noted.